Zack was the beneficiary of a life insurance policy on his deceased wife. Zack had paid $$20,000$ in premiums on the policy. He collected $$50,000$ on the policy

when his wife died from a terminal illness. Because it took several months to process the claim, the insurance company paid Zack $$53,000,$ the face amount

of the policy plus $$3,000$ interest. Zack must include $$23,000$ in his gross income.

True

False